PROJECT PROPOSAL

Project Proposal

Project Proposal

Company Overview

The company, Flexible Models (FM), develops to-the-scale industrial models. The company's principal clients are industrial construction companies and their projects include building manufacturing plants, refinery process plants, and public usage buildings, such as halls and shopping malls. FM also has clients in the residential construction business but deals in building complexes having more than 17,000 square meters of actual usable area. The model development skills of FM are well known across industries.

Production Specifications

The size must be 300 x 250 x 200 cm with a slot of 10 x 10 x 25 cm.

The tolerance on outer dimensions must be +/-2 cm.

The tolerance on dimensions of the slot must be 0 to -3 mm in width. In short, the slot cannot be more than 10 x 10 cm.

It should be made of cardboard or metal sheet.

It should be smooth in appearance.

Project Plan

Below is the estimated project plan for the FM Company. The probability of things going in the right way is 0.7 thus giving us the 70% confidence in the project being running appropriately. The project plan includes tasks description, number of days for the required task, the rate per day of the particular task and the total cost.

Task Name

Duration (Days)

Rate Per Day (USD)

Type of resource

Resource Required per day

Total Cost (USD)

Interview client stakeholders

4

150

Design

8

4800

Product detail analysis

6

150

Design

10

9000

 

1

150

Assembly

6

900

Refinement of the final draft

2

150

Design

4

1200

Design and Concept                       

 

 

 

 

0

High level design

4

150

Design

4

2400

Details with operation designs

6

150

Design

12

10800

Production

 

 

 

 

0

Set up

4

150

Assembly

6

3600

Cutting and parts development

3

90

Cutting

9

2430

Sub-assembly 1

6

150

Assembly

12

10800

Sub-assembly 2

6

150

Assembly

12

10800

Sub-assembly 3

4

150

Assembly

8

4800

Assembly integration

3

150

Assembly

6

2700

Material

 

 

 

 

0

Cardboard sheet

-

 20

50 Sheets

-

 1000

Metal sheets

-

 25

50 Sheets

-

 1250

Cubes

-

150 

900 Pieces

-

135000 

Delivery

 

 

 

 

0

Pre-delivery

2

 

 

-

3000

Shipment/Delivery—delivery takes 2 weeks by sea.

 

 

Outsourced

-

6000

Implementation

7

150

Design

11

11550

 

1

150

Assembly

7

1050

223080

Risks Cost Associated with the Project

It is undoubtedly true that projects are risky because of their common characteristics, by deliberate design, and because of the external environment within which they are undertaken. It is impossible to imagine a project without risk. Of course, some projects will be high-risk, while others have less risk, but all projects are by definition risky to some extent. The 'zero-risk project' is an oxymoron and a logical impossibility - it does not and cannot exist (Martin, 2002, pp. 44). However, the link between risk and reward makes it clear that not only is a project without risk impossible, it is also undesirable.

The important thing is not to keep risk out of projects, but to ensure that the inevitable risk associated with every project is at a level, which is acceptable to the sponsoring organisation, and is effectively managed. Indeed those involved with launching, sponsoring and managing projects in organisations should welcome risk in their projects, since it enables and supports change, innovation and creativity - as long as it is taken sensibly, intelligently and appropriately, and as long as it is managed effectively.

It is also important to remember that not all risk is bad, since the concept includes both threats and opportunities, as discussed in the previous chapter. Within the project context, this means that there are uncertainties that matter because if they occurred they would hinder achievement of project objectives (threats), but there are also uncertainties whose occurrence would help to achieve those objectives ...